b. Compute overhead variances using a three-variance approach. Actual OH OH Spending Variance Budget at Actual = OH Spending Variance $ 0 $ Budget at Actual $ 0 = $ 0 OH Efficiency Variance Budget at Standard = OH Efficiency Variance 0 $ Budget at Standard 0 = $ Volume Variance Applied OH = Volume Variance 0 $ 0 = 0 0 c. Compute overhead variances using a two-variance approach. Budget Variance Actual OH $ Budgeted OH = Budget Variance 0 $ 0 = $ 0 Volume Variance Applied OH 0 $ 0 = Volume Variance = $ 0 = Budgeted OH $